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Why data engineers are becoming the backbone of AI, product, and business decisions

23/02/2026 14:43:00

Many people still believe that a data engineer’s primary responsibility is building data pipelines. In reality, data engineers create the foundation upon which analytics, machine learning, and critical business decisions are built. As organisations generate increasing volumes of data and adopt artificial intelligence (AI) driven systems, the role of the data engineer is rapidly evolving beyond traditional ETL (Extract, Transform, Load) responsibilities. Based on my experience building cloud-scale data systems at Amazon, modern data engineering is no longer just about moving data between systems. It is about designing scalable, reliable, and intelligent data platforms that enable teams across an organisation to innovate faster and make better decisions.

ETL is only the starting point. While extracting data from APIs and loading it from external sources remains important, the real value of data engineering begins after ingestion. The true impact comes from transforming raw data into trusted and usable data assets. This involves several critical responsibilities:

Without these steps, data becomes noisy, unreliable, or unusable. A data engineer’s role is not just to collect data but to ensure organisations can confidently rely on it for decision-making.

As data volumes grow and systems become increasingly complex, scalability and reliability have become core requirements. Modern data engineers must design pipelines capable of handling high throughput while enabling real-time or near real-time processing. Performance optimisation and operational stability are now essential parts of the role. In my experience working on financial data systems at Amazon, one challenge was not only ingesting large volumes of data but processing it efficiently and reliably at scale. This required optimising Redshift workloads, managing distributed processing, and designing systems that minimised bottlenecks while maintaining high availability. Through responsibilities like these, data engineers are increasingly acting as platform engineers, building internal data platforms that empower multiple teams rather than serving a single use case.

One of the most impactful, yet often invisible, contributions of data engineers lies in enabling AI and analytics. Machine learning models are only as effective as the data they are trained on. Analytics insights are only as reliable as the pipelines powering them. Product decisions are only as strong as the metrics behind them. By building reliable data foundations, data engineers enable data scientists to experiment faster, product teams to iterate more efficiently, and business leaders to make informed decisions with confidence.

Today’s data engineer operates at the intersection of engineering, analytics, and business strategy. Much of the work involves collaboration across disciplines. This includes partnering with software engineers to integrate data systems into production platforms, supporting data scientists with clean and well-structured training datasets and working with business teams to define metrics, dashboards, and reporting logic

This role goes beyond technical execution. It requires understanding business goals, asking the right questions, and designing scalable solutions aligned with organisational outcomes. In many ways, data engineers act as translators between raw data and real-world decisions.

As the role evolves, so does the definition of a data engineering career. Data engineers are moving from pipeline execution toward ownership, owning data products, platforms, and data quality end-to-end. This evolution is opening new career pathways such as analytics engineering, data platform engineering, AI infrastructure engineering and product and strategy roles. Engineers who embrace this broader perspective are no longer just implementers; they become architects of how organisations leverage data to create value.

Data engineers are no longer simply responsible for moving data. They are builders of the infrastructure that powers AI, analytics, and modern decision-making. As organisations compete in the data and intelligence economy, the importance of this role will continue to grow. Nearly every modern team depends on reliable data to operate effectively, and data engineers ultimately influence not only systems but business outcomes themselves. In many ways, data engineers are the quiet drivers behind modern organisations, enabling innovation, insight, and smarter decisions at scale.

This article is authored by Paras Pandey, data engineer II, Amazon.

by Hindustan Times